TREE NEWS update: China’s Ministry of Finance auctioned 20 billion yuan of 63-day bonds at 1.0495%, 35 billion yuan of 91-day bonds at 1.1270%, and 35 billion yuan of 50-year bonds at 2.2778%. Bid-to-cover ratios were 3.56, 3.42, and 10.07 times respectively.
China MoF sells 63-day, 91-day and 50-year bonds
The exceptionally high bid-to-cover ratio on the 50-year tranche signals strong demand for long-duration risk-free assets, even as short-term yields sit near historic lows. This suggests investors are locking in yields ahead of potential rate moves, while the steep curve between 91-day and 50-year paper highlights a preference for duration. Whether this appetite persists will shape the government's ability to extend its debt maturity profile.
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